Tantech Holdings Announces 1-for-24 Common Share Consolidation

Rhea-AI Summary

Tantech Holdings Ltd (NASDAQ: TANH) announced a one-for-24 share consolidation approved by the Board on October 28, 2022, to regain NASDAQ compliance. Effective November 9, 2022, common shares will trade under the same symbol but with a new CUSIP Number. This consolidation will reduce the outstanding shares from 29,278,601 to approximately 1,219,941. The authorized shares will also decrease from 60,000,000 to 2,500,000. No fractional shares will be issued; they will be redeemed by the Company.

Positive

• None.

Negative

• The share consolidation may be interpreted as an indication of financial struggles or need for compliance.
• The significant reduction in outstanding shares from 29,278,601 to approximately 1,219,941 may signal underlying issues affecting shareholder value.

LISHUI, China, Nov. 8, 2022 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company"), announced today that the Company's Board approved on October 28, 2022 to effect a share consolidation of the Company's common shares at the ratio of one-for-24 with the marketplace effective date of November 9, 2022.

The objective of the share consolidation is to enable the Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain its listing on Nasdaq.

Beginning with the opening of trading on November 9, 2022, the Company's common shares will trade on the NASDAQ Capital Market on a split-adjusted basis, under the same symbol "TANH" but under a new CUSIP Number, G8675X149.

As a result of the share consolidation, each twenty-four common shares outstanding will automatically combine and convert to one issued and outstanding common share without any action on the part of the shareholders. No fractional common shares will be issued to any shareholders in connection with the share consolidation, and such fractional shares will be redeemed by the Company.

The share consolidation will reduce the number of common shares issued and outstanding from 29,278,601 to approximately 1,219,941 (subject to the redemption of the fractional shares at the closing price of the common shares on November 8, 2022). The authorized number of common shares will be reduced by the same one-for-twenty-four ratio from 60,000,000 to 2,500,000.

About Tantech Holdings Ltd

For the past decade, Tantech has been a highly specialized high-tech enterprise producing, researching and developing bamboo charcoal-based products with an established domestic and international sales and distribution network. Since 2017, when the Company acquired 70% of Shangchi Automobile, a vehicle manufacturer based in Zhangjiagang City, Jiangsu Province, it has manufactured and sold vehicles. The Company established two new subsidiaries, Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile Co., Ltd., in November 2020, to produce and sell street sweepers and other electric vehicles. The Company is fully ISO 90000 and ISO 14000 certified and has received a number of national, provincial and local honors, awards and certifications for its products and scientific research efforts. The Company's subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, is engaged in commercial factoring for businesses in and related to its supply chain. For more information please visit: http://ir.tantech.cn.

Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the sales, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Tantech Holdings Ltd
Investor Relations
Tel: +86 (578) 226-2305
ir@tantech.cn

 

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SOURCE Tantech Holdings Ltd.

FAQ

What is the purpose of Tantech Holdings' share consolidation?

The share consolidation aims to help Tantech regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain its listing.

When will Tantech's share consolidation take effect?

Tantech's share consolidation will take effect on November 9, 2022.

What will be the new number of shares after the consolidation?

After the consolidation, the number of common shares will decrease from approximately 29.3 million to around 1.2 million.

How will the share consolidation affect shareholders?

Shareholders will see their shares consolidated at a ratio of one-for-24, meaning they will hold fewer shares but each will have a higher value.

What is the new CUSIP number for Tantech after the consolidation?

The new CUSIP number for Tantech's common shares after the consolidation is G8675X149.